Stock / Symbol: SPDR DOW Jones Industrial Avg ETF / DIA
Option Strategy: [private_monthly]put calendar[/private_monthly]
Price at trade post: $155
Reasoning: Looking for a trade that benefits from a little pullback in the market / increase in volatility. The Greeks on this trade are: delta of -41, a positive theta of 2.6 and a positive vega of 42. If our upside stop is triggered, will probably add a [private_monthly]call calendar making a double calendar trade. [/private_monthly]
Trade Details:[private_monthly]
BTO 4 DIA Sep13 152 puts
STO -4 DIA Aug13 152 puts
for a max net debit of $1.30 per contract (day order, limit order). The mid is currently at $1.25.
Requirements:
Cost/Proceeds $520
Option Requirement $0
Total Requirements $520
Estimated Commission $12
[/private_monthly]
Max Risk: $520
Max Reward: $370 or 71% (at current volatility level) at $152 or by Aug 16
Profit Range: 149.25 to 154.75 by Aug 16
Suggested Upside stop: [private_monthly]@ $155.75
Suggested Downside stop: @ $150.50
[/private_monthly]
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